Localize Operations and Distribution Hubs

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Saudi's e-commerce market is the largest in the region, expected to reach 16.3 billion USD in 2030 (between 2020-2030 the e-commerce market is expected to be worth a cumulative 115.4 billion USD). By comparison, the remaining GCC countries combined are expected to reach 13.4 billion USD. Saudi has prioritized e-commerce in its Vision 2030 – aiming to boost the sector in the Kingdom.

Saudi Arabia is well positioned for global e-commerce companies  to set-up a regional hub, to maximize localization across the value chain. This can include activities such as:

  1. Building and operating a regional fulfilment center
  2. Housing regional strategic divisions
  3. Housing regional data team

Saudi is uniquely positioned to be the hub of e-commerce for the following reasons:

  1. Saudi has a large and fast-growing online retail market, which is expected to reach 16.3 billion uSD in 2030, and grow at a CAGR (2020-2030) of 12%
  2. Saudi is located centrally in the MENA region, giving it a strategic advantage as a hub for export
  3. Cost competitive with low labor and electricity costs in comparison to most global hubs
  4. Efficient customs clearance, with recent reforms shortening the process and reducing amount of documentation

Opportunity Timeline

Investment Start Date
Starting 2020

Opportunity Details

Information and Technology
Sub sector
To be determined by the investor
To be determined by the investor
Investment size
Starting 2020

Investment Model

Model: Opportunity to consider different operating models:
  • Pure private sector investment
  • Joint venture with local player

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